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The global consumer durables market is set to reach approximately USD 900 to 950 billion by 2030, yet India accounts for less than 1 per cent of global trade, according to a joint report by the Boston Consulting Group (BCG) and the Confederation of Indian Industry (CII).
While domestic exports continue to expand, outbound shipments remain concentrated in nearby markets such as the SAARC region and the UAE, leaving local manufacturers with negligible1 presence across the world's largest import destinations. "Building capacity to serve domestic demand only pays off if it's also cost-competitive enough to export," the report stated. "India faces a material cost disadvantage vs leading exporters, driven by scale, backward integration, technology & policy support gaps, and compounded by limited testing, certification & compliance infrastructure." To address these vulnerabilities, the joint study identified five strategic priorities: deepening localization beyond select categories, developing meaningful export scale in premier import markets, strengthening research and product innovation capabilities, deploying artificial intelligence to enhance productivity, and establishing a predictable, enabling regulatory environment. Bill-of-materials localization across categories currently ranges from 25 to 70 per cent, with televisions and air conditirs at the lower end and washing machines and refrigerators at the upper end. Key gaps persist in components where global supply remains heavily concentrated, such as television display panels, RAC compressors, refrigerator insulation, and washing machine motors. Although overall localization is estimated to rise to 30 to 80 per cent by 2030, import reliance continues due to technological barriers and fragmented domestic demand. "As these domestic capacities are built, the ambition should not stop at import substitution achieving competitive scale will increasingly require capacities that can serve both India & export markets," the report added. The report highlighted that the top ten listed consumer durables manufacturers in India invest under one per cent of revenue in research and development, compared to one to four per cent deployed by global peers. Furthermore, adopting agentic and generative AI across manufacturing, procurement, and supply chains is identified as critical to offsetting cost pressures and building international scale. The report also highlighted that India is projected to be one of the world's fastest-growing consumer durables markets through 2030, growing at an 8 to 10 per cent compound annual growth rate to reach Rs 300,000 to 325,000 crore. This structural expansion stems from household penetration headroom, rising affluence, nuclearization, easier financing, wider distribution networks, and emerging demand for premiumization and replacements. Over the next five years, this momentum creates an incremental Rs 40,000 to 50,000 crore opportunity for domestic value addition across materials and conversion. (ANI)
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